Analysis of Ford, VW & Volvo HR policies to retain their talents

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Part I


The three automotive companies all placed a strong emphasis on equal opportunities. This is a very important factor as workers all want to be treated fairly. All employees need to know that if they work hard they will be rewarded.


A workplace based on meritocracy is crucial to motivating people, because if it is not an employee would feel that even if they put in the efford they might be passed-over because of discrimination. In the global economy of today differences in ideas, perceptions, attitudes are vital to generating innovative ideas. Different approaches to problems and situations will help a company remain competitive and agile enough to change. Thus differences should be embraced and harnessed to the company’s advantage.


All three companies also promise a challenging career for new employees. This appeals as psychologically men and women want to be constantly challenged. No one wants to stay in a boring job that does not give one the chance to try new things and give one the chance to prove one’s worth. Volvo promises, “to provide challenge, job satisfaction and opportunities for personal growth and development”. Over at Volkswagen, “…people are our most valued asset… provide uncommon opportunities for personal and professional growth… We encourage and reward initiative, creativity, teamwork and performance within a fast-paced, stimulating environment”. Whereas at Ford for the experienced worker, “take advantage of opportunities to accept different assignments that can broaden and deepen your valuable work experience”. These are all catch phrases to entice talented new professionals.





Ford’s website provided the most details about the career development of their employees and the chances that will be given. In addition they made it a point to show their deep commitment to equal opportunities regardless of race, age, sex, religion etc. There was a section dedicated to diversity. For all the main minority ethnic groups, there exists an association to promote cultural understanding. It is clear that diversity training is taken seriously at Ford. This would definitely motivate minority employees. However this kind of environment would benefit not only the groups that are represented but be a testament to all of the impartiality of the Ford management.


At Volvo they have a, “long tradition as a company with open exchange of information and respect for the individual”. Instead of only stating that they are committed to equal opportunities, they used individual employees to tell us their experiences at Volvo. For example the employee from Korea was telling us about how in a strong patriarchal society like Seoul, she was surprised to find she enjoyed the same opportunities as the men. Equality at the workplace is guaranteed to motivate workers.


Training is another common motivating factor that all three companies advocate. Employees want to constantly upgrade themselves to become more professional and thus advance in their careers. The companies recognize this fact. Instead of letting talented people leave them to do that, companies have in-house training programs. Employers that are committed to the growth of their employees are a definite attraction for today’s upwardly mobile. But the primary goal is to be trained in skills that will benefit the employee professionally. And many of the automotive and large Multinational companies realize this. This is why many of them provide such high-level training. It is a win-win situation for the company. The talented employees work hard to upgrade and improve themselves whilst contributing more to the company. They become better equipped and feel more appreciated.


Ford’s training program includes the Fairlane Training and Development Center. This is a center that focuses on teaching vital skills to existing employees to become future leaders. For example they teach the Six Sigma theory that is now viewed as one of the most important management theories. Since 1 Six Sigma has become Ford’s turnaround strategy to reclaim market share. They trained thousands of their workers to improve their skills on quality management so that they could implement this new strategy.


In addition they have set up a Leadership Development Center that is targeted at grooming future leaders. Providing more incentive for workers to work hard and hopefully become leaders in the organization.


Volvo’s training also centers on improving the employees skills in leadership, competence development and project management. Both companies are trying to assert to their employees that at their companies, the chances for improvement are numerous and they need not leave to learn more. Not only do companies now have to sell to their clients, to retain the best talents they have to sell themselves as employers and such motivational packages are very convincing.


At Volkswagen they have a special training program called the “Job Families Concept”, managed by the Job Family Management and Development team. Here the aim is to, “identify and strengthen strategic core competencies. In implementing Job Families, Volkswagen is pursuing its aim of achieving transparency in terms of requirements and future-oriented skills acquisition”. New employees who show potential might be admitted into this elite circle where they will be given a lot of exposure to different departments and levels of hierarchy. Thereby spurring the individual to work harder. They also have their own higher learning institute called AutoUni targeted at imparting managerial know-how. This kind of training would bind the employee even more tightly to the organization.


Tuition reimbursement schemes are available in all the automotive companies. These schemes are meant to encourage employees new and old to upgrade themselves. The company wants you to become better skilled, more professional and they are willing to support you to do that. With the tuition reimbursement after graduation employees who are better educated will want to go back to these companies willingly because they will believe that the company values them. This kind of motivation becomes a strong bond that ties the employees to the company. And with stronger ties one can be assured that productivity will definitely improve.


Furthermore Ford and Volvo have additional financial schemes to help their employees earn more. At Volvo it’s a kind of profit sharing with the company, “Volvo Global Profit Sharing Programme” thus encouraging workers to work harder both for themselves and the company.


At Ford there is an investment and savings plan as well. When the company shows such concern for even the financial health of its employees, workers will feel even more indebted to their management again spurring them to work harder.


Finally all the above companies provide health insurance and retirement perks. However I believe this is a necessary stipulation by the unions and the labor laws in each country and is thus not a real motivating factor.





Part II and III


In this part of my essay I will be answering both part II and III together because in order to explain my choice that Ford had the most motivational package, I would need to compare it to its European counterparts.


At Ford they want to promote learning because they know to keep an employee they must align themselves with the new employee’s goals. At Ford they have always established themselves as a company that is committed to their employees. This was a mentality passed down from Henry Ford. There were many pages dedicated to introducing the corporate culture at Ford�their values and beliefs. Their package seemed much more holistic and comprehensive. More detail was given on what new employees can expect when working at Ford. They introduced many kinds of associations available to promote equal opportunity and build a strong business network. The value proposition at Ford is that they are the premier employer and that they give the best opportunities.


Ford training programs also seemed more intensive and inclusive. There were numerous orientation programs to bring new employees up to speed with company policy and culture. This attention to new employee needs is vital. Especially since newcomers normally harbor many reservations about moving into a new environment. Such programs would motivate workers because they know the company is trying to help integrate them.


Ford repeatedly sought to prove to new employees that there existed no discrimination of any kind. Again this highlights the American culture of being more upfront and open. The diversity programs it has reiterates their strong commitment and appears much more convincing compared to Volvo or Volkswagen.


Although I have chosen Ford for the best all-round motivational package I feel that it would depend very much on the individual. At Ford there is a large emphasis on family benefits. There are programs to ease the burden on workers like childcare, flextime etc. Family worries are a key problem to many people often because pressures from home are root causes of underperformance at work. Ford made a calculated efford to help alleviate such problems for its workers and in turn, itself.


The Volkswagen culture differs from the Ford in that they do not include the employee’s family. However to a single executive with no family I was also impressed with the training opportunities made available to one by Volkswagen. This was especially clear from the Volkswagen Annual Report 00. The Job Families scheme was very attractive because it is dedicated to training one’s management skills and also provides the invaluable chance to network across the organization.


Therein lies the disparity between Ford and its European counterparts. Whilst Ford wanted to include the family in the benefits, Volvo and Volkswagen were rather taciturn about family benefits. When family is included in activities at the company, pressure is exerted from home when the worker is considering leaving the company. This is a subtle but highly effective way to keep employees at Ford. This promotes long-term loyalty.


Furthermore this kind of family mentality would motivate employees to give of their best because they would feel like they are working for themselves and their family. They would not entertain leaving because Ford is their family. The family unit is the basic building block of any society and remains to be one of the strongest types of human bonds. Once you are family you are family for life.


Volkswagen attempts to portray a family atmosphere in the website when it mentions holidays but Ford still appears more persuasive. American companies tend to be aggressive in their marketing while European are more subtle. But I still maintain that it is still very much dependent on the individual which they prefer. Some employees might like the more indirect approach and less family-oriented style of the European automakers.


Strong commitment to providing an open and meritocratic workplace is just the beginning. Only Ford is successful at using family as an important motivational tool. The ways in which these two kinds of companies attract talent is very reflective of their own cultures. Americans are much more showy and aggressive, whereas Europeans are more subtle. At Ford you had to navigate a great deal before you found the benefits, whilst at Volkswagen it was just at the next turn. Methods to attract employees will always differ from country to country because the people will respond differently.


The interesting point I have learnt is that though they have different styles, all companies seem to be moving in the same direction. To the new-age executive who knows what they want, added incentives like constant upgrading programmes and leadership training will become de facto standards. Companies recognize that people are their greatest asset and to keep such talent they too must align themselves with the employee’s goals and aspirations. A global market requires global players and they know to remain at the top they will have to attract the best from all over the world. Thus international human resource managers will be required to manage programs and incentives to attract such global talent.


Bibliography


www.ford.com


www.volvo.com


www.vw.com


Gordon, David T., “Can Ford Clone Leadership NA?”, CIO Magazine, http//www.cio.com/archive/041501/hs_ford.html, (April 15th 001)


Smith, Kennedy, “Six Sigma at Ford Revisited”, Quality Digest,


http//www.qualitydigest.com/june0/articles/0_article.shtml, (Sept 00)


Tang Ningyu, INTERNATIONAL HUMAN RESOURCE MANAGEMENT (Presentation)


Noe, Raymond A. and Hollenbeck, John R. and Gerhart, Barry and Wright, Patrick M. Human Resource Management Gaining a Competitive Advantage, (Irwin McGraw-Hill,


000)


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